Manx Financial (MFX) AI Stock Analysis

• Market Cap: £33.20M
• Dividend Yield: 2.42%
• Average Volume (3M): 82.17K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.99
• Revenue Growth: 7.71%
• EPS Growth: 58.84%
• Country: UK
• Employees: 177
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.03
• Shares Outstanding: 122,950,730
• 10 Day Avg. Volume: 95,344
• 30 Day Avg. Volume: 82,170
• PEG Ratio: 0.04
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 3.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: 30.00p ▲(9.09% Upside)

Manx Financial's strong financial performance and attractive valuation are the primary drivers of its stock score. The bullish technical indicators further support a positive outlook, although overbought signals warrant caution. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Sustained Revenue and EPS Growth

Consistent revenue expansion and a large EPS increase indicate the core lending business is scaling and converting origination into profits. Over months this supports reinvestment into product channels, improved loss absorption and strengthens capacity to expand lending volumes sustainably.

High Profitability Margins

Robust gross and operating margins reflect efficient underwriting and cost control in a lending franchise. Durable margin levels provide buffers against rising credit costs and enable consistent internal financing for growth, supporting long-term return generation for shareholders.

Strong Free Cash Flow Improvement

Large FCF growth and OCF materially aligned with net income show improving cash generation from operations. Durable cash conversion enhances liquidity to fund new loans, service obligations and pay dividends, reducing reliance on external funding over the medium term.

Negative Factors

Moderate Leverage

A debt/equity ratio above 1 indicates meaningful leverage typical for lenders but raises sensitivity to asset quality deterioration. Over months, higher leverage can amplify earnings volatility, constrain capital flexibility and increase funding costs if market conditions tighten.

Low Equity Cushion

A low equity-to-assets ratio leaves a thin capital buffer against loan losses or funding stress. Structurally, this increases the likelihood the firm must raise capital or reduce lending after adverse shocks, which can impair long-term growth and strategic initiatives.

Cash Conversion Needs Improvement

Although cash generation has improved, OCF/Net Income below 1 and FCF/Net Income ~0.58 indicate incomplete conversion of accounting profits into liquid cash. Persistently weaker conversion limits capacity to self-fund growth, dividends or absorb losses over the medium term.

Manx Financial Business Overview & Revenue Model

Company Description

Manx Financial Group PLC, through its subsidiaries, provides asset and personal finance, and wealth management services in the Isle of Man, the United Kingdom, and the Channel Island. The company provides various financial products and services, such as savings accounts, asset financing, personal loans, block discounting, and other specialist secured credit facilities to consumers and business sectors; and loans to small and medium sized entities, as well as foreign exchange, and hire purchase and leasing brokerage services. It also offers wealth management, mortgage, general and life insurance, and retirement planning services to personal and corporate customers; and payment processing facilities. The company was formerly known as Conister Financial Group PLC and changed its name to Manx Financial Group PLC in July 2009. Manx Financial Group PLC was founded in 1935 and is based in Douglas, the Isle of Man.

How the Company Makes Money

Manx Financial generates revenue through multiple streams primarily derived from interest income on its lending products, including secured loans and mortgages. The company charges interest on the capital it lends to borrowers, which constitutes a significant portion of its revenue. Additionally, MFX may earn fees from loan origination, processing, and servicing, contributing to its overall earnings. The company may also engage in partnerships with local businesses and financial institutions to expand its service offerings, enhance its distribution channels, and attract a broader client base, further supporting its financial growth.

Manx Financial Financial Statement Overview

Summary

Manx Financial exhibits strong financial performance with robust revenue and profit growth, solid margins, and improved cash flows. However, moderate leverage and the need for better cash conversion are areas to watch.

Income Statement

The income statement shows robust growth with a significant revenue increase from last year, indicating strong business performance. Gross Profit Margin stands at 59.8%, and Net Profit Margin is 14.1%, highlighting efficient cost management. The EBIT Margin of 17.3% and EBITDA Margin of 19.5% suggest solid operational efficiency, though slightly less than the previous year.

Balance Sheet

The balance sheet displays a stable financial structure with a Debt-to-Equity Ratio of 1.26, which is manageable but indicates moderate leverage. Return on Equity is strong at 21.7%, demonstrating effective use of equity to generate profits. The Equity Ratio of 7.5% suggests limited equity relative to total assets, which is common in the banking sector but could pose risks if liabilities grow disproportionately.

Cash Flow

Cash flow analysis reveals positive trends with a Free Cash Flow Growth Rate of 135%, indicating improved cash generation. The Operating Cash Flow to Net Income Ratio of 0.78 suggests that operating cash flow is closely aligned with profitability. Free Cash Flow to Net Income Ratio of 0.58 indicates a strong ability to convert income into cash, though there is room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.77M	57.54M	46.01M	32.48M	24.71M	22.45M
Gross Profit	0.00	34.40M	31.48M	26.16M	19.74M	17.23M
EBITDA	10.36M	11.22M	8.55M	6.80M	4.45M	2.78M
Net Income	9.42M	8.10M	5.29M	4.33M	2.79M	1.94M
Balance Sheet
Total Assets	507.31M	497.79M	480.70M	379.26M	308.75M	267.96M
Cash, Cash Equivalents and Short-Term Investments	0.00	16.20M	12.11M	22.63M	20.28M	34.05M
Total Debt	46.92M	47.08M	40.67M	32.95M	24.97M	22.73M
Total Liabilities	466.11M	460.48M	444.72M	349.49M	283.77M	245.53M
Stockholders Equity	41.17M	37.26M	34.94M	29.58M	24.93M	22.35M
Cash Flow
Free Cash Flow	8.75M	4.73M	2.01M	-4.69M	316.00K	-5.63M
Operating Cash Flow	8.98M	6.33M	5.54M	-2.72M	2.91M	-4.21M
Investing Cash Flow	-7.24M	-2.48M	-111.66M	-2.17M	-17.78M	19.21M
Financing Cash Flow	3.88M	244.00K	95.60M	7.24M	1.10M	4.44M

Manx Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MFX, the sentiment is Positive. The current price of 27.5 is above the 20-day moving average (MA) of 26.73, below the 50-day MA of 27.86, and above the 200-day MA of 25.94, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 70.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MFX.

Manx Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MFX	75 Outperform	£33.20M	3.41	24.08%	2.42%	7.71%	58.84%
DFCH	73 Outperform	£109.12M	8.15	12.34%	―	17.35%	91.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ARBB	59 Neutral	£141.23M	8.71	6.22%	5.68%	1.68%	-46.69%

Manx Financial Corporate Events

Manx Financial Secures £2m Related-Party Loans to Support Conister Bank Capital

Manx Financial Group has secured two new three-year unsecured loans totalling £2 million from director Jim Mellon and his company Burnbrae Limited to bolster the regulatory capital of its subsidiary Conister Bank under Isle of Man banking rules. Structured on arm’s-length, standard commercial terms with an 8% annual interest rate and repayable at any time, the related-party transactions were approved by the group’s independent directors, who, after consultation with the company’s nominated adviser, deemed the financing fair and reasonable for shareholders compared with alternative third-party funding or a rights issue, underscoring the group’s strategy to support the continued expansion of Conister Bank while maintaining regulatory capital strength.

The most recent analyst rating on (GB:MFX) stock is a Buy with a £34.00 price target. To see the full list of analyst forecasts on Manx Financial stock, see the GB:MFX Stock Forecast page.

Manx Financial Group Announces Exercise of Restricted Stock Units and Share Issuance

Manx Financial Group PLC has announced the exercise of Restricted Stock Units over 2,072,500 ordinary shares at no cost, with key directors and a managerial figure acquiring significant shares. This move, which involves the issuance of new shares and their admission to trading on AIM, is expected to impact the company’s share capital structure, increasing the total number of ordinary shares to 122,950,726. This development is significant for stakeholders as it may influence shareholding calculations under financial regulations.

The most recent analyst rating on (GB:MFX) stock is a Buy with a £34.00 price target. To see the full list of analyst forecasts on Manx Financial stock, see the GB:MFX Stock Forecast page.

Manx Financial Director Increases Shareholding

Manx Financial Group PLC announced that Hargreaves Lansdown (Nominees) Limited, acting as a nominee for Director Mr. James Smeed, purchased 25,000 Ordinary Shares of the company at a price of 27.45 pence per share. This transaction increases Mr. Smeed’s total shareholding to 200,000 shares, representing 0.17% of the company’s issued ordinary share capital. This announcement, containing inside information as per the Market Abuse Regulation, has been made public.

The most recent analyst rating on (GB:MFX) stock is a Hold with a £26.00 price target. To see the full list of analyst forecasts on Manx Financial stock, see the GB:MFX Stock Forecast page.

Manx Financial Group Reports Strong Quarterly Growth and Strategic Partnerships

Manx Financial Group has initiated quarterly operational updates to enhance investor communication, with the first update highlighting significant growth in Conister Bank’s net loan book and deposits. The company has formed a strategic partnership with Fiinu plc to offer seamless overdrafts in the UK market and is expanding Payment Assist’s buy-now-pay-later products internationally. Despite challenges from the FCA’s interpretation of commission arrangements, the Group is well-positioned for organic growth due to its short-term lending products and access to retail deposits. The Group has also launched a new website and increased its investment in debt collection capabilities.

The most recent analyst rating on (GB:MFX) stock is a Buy with a £30.00 price target. To see the full list of analyst forecasts on Manx Financial stock, see the GB:MFX Stock Forecast page.

Manx Financial Group Issues New Shares for Scrip Dividend

Manx Financial Group PLC has announced the issuance of 1,162,469 new ordinary shares as part of a Scrip Dividend election, priced at 26.349 pence per share. Directors Jim Mellon and Dr. Gregory Bailey, significant shareholders, have opted to receive new shares, maintaining their joint percentage holding. The new shares will be admitted to trading on AIM, with the total issued share capital now consisting of 120,878,226 ordinary shares.

The most recent analyst rating on (GB:MFX) stock is a Buy with a £30.00 price target. To see the full list of analyst forecasts on Manx Financial stock, see the GB:MFX Stock Forecast page.